Australian automotive suppliers are set to benefit from a $35 million initiative announced today.

Jointly funded by the Federal, Victorian, and South Australian governments, the Automotive New Markets Initiative (ANMI) is to assist new product development and expansion into global markets and non-automotive industries.

“At a time of significant structural pressures on the car industry, local components suppliers must look to transform themselves into companies that can compete not only in selling parts into local production, but also into global auto industry markets and into other sectors like defence, rail, aerospace and mining”, Victorian Minister for Manufacturing, Exports and Trade Richard Dalla-Riva said.

ANMI is comprised of three elements; the Automotive New Markets Program, Business Capability Support Program, and the Automotive Envoys and Automotive Supplier Advocate.

$30 million in the ANMI program will be directed into 'new markets', aimed at assisting suppliers diversify their product beyond the automotive industry, and also seeking markets outside Australia.

The Business Capability Support Program will be directed at expanding production capabilities and improving operational efficiency.

Lastly, the Automotive Envoys and Automotive Supplier Advocate will be used to better promote local suppliers in these new markets and industries.

The ANMI funding forms part of the Federal government’s $5.4 billion New Car Plan, which is aimed at maintaining and grwoing local automotive manufacturing capabilities and technologies.

Such a focus on suppliers is timely following the recent demise of parts manufacturers APV Automotive Components and CMI Industries - at the expense of more than 200 jobs.

Distribution of ANMI funding is available by application only, with applications closing on September 6.